Retargeting and remarketing are two distinct strategies SaaS companies use to re-engage potential and existing customers. Here’s the difference:
- Retargeting: Uses paid ads on platforms like Google or Facebook to reach people who visited your site but didn’t convert. It’s great for staying visible to prospects and addressing objections like pricing concerns.
- Remarketing: Focuses on direct communication through email, SMS, or in-app notifications to nurture leads or retain customers. It’s tailored to known users and leverages first-party data for highly personalized messages.
Key takeaway: Retargeting keeps your brand in front of anonymous visitors, while remarketing is about building deeper connections with known users. Combining these approaches helps SaaS businesses boost conversions, reduce churn, and grow revenue.
Quick Comparison
| Aspect | Retargeting | Remarketing |
|---|---|---|
| Data Source | Third-party (cookies, pixels) | First-party (CRM, user data) |
| Channels | Paid ads (Google, Facebook, LinkedIn) | Email, SMS, in-app notifications |
| Audience | Anonymous visitors | Known contacts |
| Cost | Pay-per-click/impression | Platform subscription |
| Personalization | Limited | High |
Both strategies are essential for SaaS growth, and the choice depends on your traffic, budget, and goals.
Retargeting: Paid Ad Campaigns for SaaS Growth
Retargeting is a powerful way to turn website visitors into a focused audience, giving you multiple chances to engage users who showed interest but didn’t take the next step. This paid advertising approach works by tracking user behavior and displaying relevant ads across platforms, keeping your brand visible during critical decision-making moments.
How Retargeting Works
Retargeting relies on tracking technologies like pixels or cookies that monitor how users interact with your site. These tools collect data on key actions, which can then be used to segment your audience effectively.
For example, you can create custom audiences based on specific behaviors: visitors who checked out your pricing page, users who started but didn’t complete a trial signup, or even current customers who haven’t logged in for a while. This behavioral segmentation allows you to deliver highly tailored messages. Someone exploring your integrations page might see ads emphasizing API capabilities, while a visitor reading case studies could be shown customer success stories.
Retargeting also employs lookalike audiences to expand your reach. By analyzing the traits and behaviors of your existing customers, these algorithms identify new prospects who share similar characteristics, helping you scale your efforts beyond just website visitors.
This data-driven approach ensures your campaigns are both precise and impactful, setting the stage for success across various advertising platforms.
Common Retargeting Channels
- Google Ads: A cornerstone for SaaS retargeting. With access to search results and the Google Display Network, your ads can appear on millions of websites, YouTube videos, and mobile apps. This platform is especially effective for reaching users during their active research phase.
- Facebook and Instagram Ads: Perfect for visual campaigns, these platforms let you showcase your software’s interface or highlight features through engaging video content. Meta’s targeting options combine demographic and interest data with website visitor insights for precise audience segmentation.
- LinkedIn Ads: The top choice for B2B SaaS, LinkedIn excels at reaching decision-makers and enterprise clients. It’s especially useful for targeting users who visited your enterprise pricing page or downloaded business-related resources.
- YouTube Advertising: A growing favorite for SaaS, YouTube lets you retarget audiences with product demos, customer testimonials, or educational videos that address common objections.
- Microsoft Advertising: Often overlooked, this platform can be a cost-effective option for B2B SaaS companies, especially those targeting enterprise customers who frequently use Microsoft products.
Each channel serves a unique purpose, but together they create a cohesive retargeting strategy that drives SaaS growth.
Goals and Benefits of Retargeting for SaaS
In the SaaS world, brand recall is essential. With long decision cycles and multiple stakeholders involved, retargeting ensures your solution stays visible throughout the evaluation process, keeping you top-of-mind when prospects are ready to decide.
Retargeting also shines at handling objections. If someone visited your pricing page but didn’t convert, you can serve ads that address price concerns, emphasize ROI, or even offer limited-time discounts. This level of precision often delivers better results than broad awareness campaigns.
Another major advantage is cost efficiency. By focusing on users who’ve already shown interest, retargeting typically delivers higher conversion rates and lower cost-per-acquisition than cold outreach campaigns. This makes it a key tactic for SaaS companies aiming to maximize marketing ROI.
Finally, retargeting opens doors for cross-selling and upselling. By analyzing customer usage patterns, subscription levels, or feature adoption, you can promote relevant add-ons or upgrades that meet their evolving needs.
These focused campaigns are a crucial part of a broader re-engagement strategy, working hand-in-hand with other marketing efforts to drive growth and retention in the SaaS space.
Remarketing: Direct Engagement for SaaS
Remarketing takes a more personal approach than retargeting. Instead of relying on paid ads, it focuses on engaging known contacts through channels you control. By using the data customers and prospects have already shared with you, remarketing delivers tailored messages that feel more like helpful conversations than generic marketing.
How Remarketing Works
Remarketing combines CRM data and behavioral triggers to respond to specific user actions. For example, if someone downloads a whitepaper, starts a free trial, or hasn’t logged into their account for a while, these events can kick off personalized follow-ups designed to guide them toward the next step.
The secret to effective remarketing lies in data segmentation. This allows you to create precise audience groups, like targeting enterprise trial users who’ve integrated your API but haven’t upgraded, or reaching out to customers who frequently use reporting features but haven’t explored your new dashboard.
Behavioral triggers make these campaigns feel timely and relevant. For instance, if a prospect abandons a trial signup, an automated email can address their concerns and offer assistance. Similarly, if a customer’s activity drops, a re-engagement campaign might include helpful resources or a proactive message from your customer success team.
Unlike retargeting, which relies on third-party data, remarketing uses first-party data – information your customers have willingly shared. This allows for highly personalized messaging, directly referencing their actions and preferences, making the communication feel more authentic and impactful.
Remarketing Goals for SaaS
Remarketing is built to nurture leads and retain customers by leveraging precise data and behavioral insights. For SaaS companies, lead nurturing is often the primary goal. By providing educational content, addressing specific challenges, and building trust over time, remarketing campaigns can help navigate the longer sales cycles typical in B2B.
Customer retention is another key focus. Did you know existing customers are 50% more likely to try new products and spend 31% more than new ones? Remarketing can introduce current users to advanced features they haven’t tried, suggest add-ons based on their usage, or encourage plan upgrades when limits are reached.
Reactivation campaigns are also a powerful tool. If a user has gone dormant, you can bring them back with strategies like announcing new features, offering limited-time discounts, or simply checking in to understand their needs. These personalized interactions often feel more genuine than generic display ads.
Remarketing also shines during onboarding. Automated sequences can help new users set up their accounts, highlight features tied to their goals, and provide timely support when they hit common roadblocks.
Common Remarketing Channels
Email marketing remains the backbone of most remarketing efforts. Tools like Mailchimp, HubSpot, and Klaviyo allow you to automate campaigns based on user behavior, dynamically segment audiences, and personalize content at scale. For example, you can create email sequences tailored to specific user actions, like trial signups or feature usage.
In-app notifications are perfect for engaging active users in real time. Use them to promote unused features, announce updates, or guide actions that improve retention. Their immediacy makes them a great tool for driving feature adoption.
SMS marketing is growing in popularity for time-sensitive messages like trial expiration reminders, account updates, or exclusive offers. While it’s important to manage frequency to avoid overloading users, SMS tends to have high open rates, making it ideal for urgent communications.
Direct mail and phone outreach can still be effective, especially for high-value enterprise prospects. A handwritten note or a personal phone call can stand out in a world dominated by digital communication, helping you build stronger relationships with decision-makers.
Push notifications work well for mobile-first SaaS products. They’re a great way to re-engage users who aren’t actively on your platform, encouraging them to return and take action.
The best remarketing strategies combine multiple channels in a coordinated way. For instance, a prospect might first receive an email, followed by an in-app notification, and then a concise SMS reminder. Each touchpoint should build on the last, respecting user preferences and communication frequency to maintain a positive experience.
Key Differences: Retargeting vs. Remarketing
Retargeting and remarketing both aim to re-engage people who’ve already interacted with your brand, but they go about it in very different ways. Understanding these differences helps SaaS companies pick the right strategy to boost conversions and reduce churn.
Here’s the key distinction: retargeting relies on third-party data, while remarketing uses data directly provided by customers. Retargeting tracks anonymous users across the web using pixels and cookies. On the other hand, remarketing taps into information customers have willingly shared, like form submissions, account details, or interactions with your platform.
The channels they use also differ. Retargeting typically operates through paid advertising platforms like Google Ads, Facebook, and LinkedIn, showing ads to users as they browse other sites. Remarketing, however, relies on owned channels such as email, SMS, or in-app notifications, giving you full control over the message and timing.
Another major difference lies in the audience relationship. Retargeting focuses on anonymous visitors – people who haven’t shared their contact information. Remarketing, by contrast, targets known users, such as prospects who’ve engaged with your content or existing customers with active accounts.
Comparison Table: Retargeting vs. Remarketing
| Aspect | Retargeting | Remarketing |
|---|---|---|
| Data Source | Third-party | First-party |
| Primary Channels | Paid ads | Email, SMS, in-app |
| Audience Type | Anonymous visitors | Known contacts |
| Cost Structure | Pay-per-click/impression | Platform subscriptions |
| Personalization Level | Limited | High |
| Privacy Dependency | High | Low |
| Typical Goals | Brand awareness | Lead nurturing |
| Message Control | Platform-limited | Complete |
| Tracking Complexity | Requires pixels | Built-in |
These differences make it clear how each strategy serves a unique purpose and sets the stage for using them together effectively.
How Retargeting and Remarketing Work Together
When combined, retargeting and remarketing create a powerful re-engagement strategy, especially for SaaS companies with longer sales cycles. Here’s how they complement each other:
Sequential engagement is a great example. Start with retargeting ads to re-engage anonymous visitors and drive them back to your site. Once they convert into leads, follow up with remarketing emails to nurture them further. For instance, someone visiting your pricing page might see retargeting ads featuring customer success stories. If they sign up for a free trial, they could then receive a remarketing email series with onboarding tips and tutorials.
Cross-channel reinforcement ensures your message sticks without overwhelming prospects. A potential customer might see a retargeting ad on an industry blog about your latest integration features. Later, they could receive a remarketing email explaining how those same features solve a specific challenge. This consistent messaging builds trust and familiarity across multiple touchpoints.
Audience expansion becomes easier when both strategies work together. Remarketing helps you identify which messages resonate most with existing customers and high-value leads. You can then apply those insights to create more effective retargeting campaigns, extending your reach to similar anonymous audiences.
Gap coverage is another key benefit. Retargeting focuses on visitors who haven’t shared their contact information, while remarketing nurtures those who have. This ensures you’re engaging with potential customers at every stage – even if cookies are cleared or emails go unopened.
To make this all work, timing and messaging need to be coordinated. Avoid overwhelming prospects with conflicting messages across channels. Instead, craft a unified narrative where retargeting ads and remarketing emails work together, each playing a specific role in guiding prospects toward conversion or helping customers expand their use of your platform.
sbb-itb-3faa397
Choosing the Right Approach for SaaS
When deciding between retargeting and remarketing, the best choice often depends on your SaaS business’s unique needs. Each strategy has its strengths, and combining them can often yield the best results by keeping your brand visible throughout the buyer’s journey.
To determine the right mix, let’s break down the key factors that should guide your decision.
Factors to Consider
Website Traffic: If your site sees limited traffic, retargeting may not be as effective. Instead, focus on remarketing to your existing contacts until your traffic grows.
Email List and CRM: A well-maintained email list opens the door for targeted remarketing campaigns. For smaller lists, simpler and broader messaging might be more practical. With email marketing delivering an average ROI of $42 for every $1 spent, it’s a powerful tool for SaaS companies.
Sales Cycle Length: Long sales cycles often require multiple touchpoints to nurture prospects. Retargeting can keep your brand top-of-mind throughout this process – especially since nearly half of visitors return 2–4 times before making a purchase. For shorter sales cycles, direct remarketing might be more effective.
Budget Allocation: Retargeting often requires ongoing ad spend, while remarketing relies more on platform subscriptions and content creation, which can be less costly upfront. A limited budget may favor remarketing, while a larger budget can support a balanced approach.
Customer Value: Retargeting makes sense when the lifetime value of a customer justifies higher ad spend. On the other hand, remarketing is often a more cost-efficient option for products with lower customer values.
Team Resources and Expertise: Retargeting campaigns demand regular optimization and creative updates, while remarketing depends on strong email copywriting and automation. Platforms like Digital Specialist Co. simplify this process by offering real-time analytics, lead tracking, and automated campaign tools, making it easier for SaaS teams to manage both strategies without heavy internal resources.
Privacy Compliance: With increasing restrictions on cookies, remarketing’s reliance on first-party data makes it a stable, long-term option – especially for industries with strict regulations.
Once you’ve considered these factors, the next step is to measure success and refine your strategy based on data.
Best Practices for Measuring Success
Multi-Touch Attribution: Relying solely on last-click attribution can undervalue retargeting’s role in conversions. Use tracking systems that capture the entire customer journey to see how retargeting ads influence actions like email engagement.
Cohort Analysis: Group users by when they first interacted with your site or joined your email list. Comparing conversion rates and customer lifetime value across these groups can highlight which strategies are working best.
Real-Time Reporting: Keep an eye on daily metrics like click-through rates (CTR), cost per click (CPC), conversion rates, and email open rates. Platforms like Digital Specialist Co. offer real-time insights, allowing you to tweak campaigns as needed.
Cross-Channel Performance: Look at metrics such as assisted conversions to understand how retargeting ads drive email sign-ups and vice versa. This broader perspective ensures that optimizing one channel doesn’t negatively impact the other.
Customer Lifetime Value (CLV) Analysis: Since 80% of businesses rely on email to retain customers, remarketing often shines in driving retention and expansion revenue rather than just initial conversions.
Frequency and Saturation Monitoring: Pay attention to how often users see your retargeting ads or receive remarketing emails. If performance drops, it could signal audience fatigue, meaning it’s time to adjust ad frequency or email send rates.
Cost Efficiency Benchmarks: Measure key metrics like cost per trial signup, paid conversion, and total customer acquisition cost. These benchmarks help fine-tune your strategy and maintain a healthy balance between cost and return.
Conclusion: Using Retargeting and Remarketing for SaaS Growth
Retargeting and remarketing both aim to reconnect with users who have already shown interest in your product or service. Instead of viewing them as standalone options, the real power lies in combining these strategies to create a well-rounded approach to customer engagement.
Retargeting focuses on keeping your brand visible during those critical decision-making moments, while remarketing leans into personalized communication, like targeted email campaigns and customized content, to address a prospect’s unique needs and challenges. Together, they form a dynamic duo that strengthens customer relationships and keeps your brand top-of-mind.
Many SaaS companies have seen success by blending these tactics seamlessly. For instance, a potential customer might first notice a retargeting ad on LinkedIn, explore your website, and later receive tailored remarketing emails that directly address their pain points. This coordinated approach ensures every stage of the buyer’s journey – from awareness to conversion – is covered.
To make the most of these strategies, rely on data-driven insights. Real-time analytics and lead tracking can help you identify which touchpoints are driving meaningful actions. With this information, you can fine-tune your campaigns to be both cost-effective and scalable, ensuring you’re getting the best return on your investment.
Ultimately, the right mix of retargeting and remarketing depends on your budget, team capabilities, and growth objectives. Start with the strategy that best fits your current resources, and as your SaaS business evolves, expand your efforts to fully leverage the benefits of an integrated customer engagement plan.
FAQs
What’s the best way for SaaS companies to use retargeting and remarketing together to boost customer engagement?
SaaS companies can make the most of retargeting and remarketing by customizing their approach for different audience groups. Retargeting is ideal for reconnecting with potential customers who’ve visited your website or engaged with your ads but haven’t made a purchase. Platforms like social media and display ads are great tools to nudge these users, keeping your product front of mind and encouraging them to take action.
On the other hand, remarketing focuses on engaging your current customers. This could mean sending personalized messages about upsell opportunities, renewal reminders, or exclusive deals. These efforts not only help boost customer retention but also maximize their lifetime value. By using behavioral data and tailoring your messaging to match where users are in their journey, SaaS companies can create a smooth, engaging experience that encourages both conversions and ongoing loyalty.
How does using third-party data for retargeting differ from first-party data for remarketing in terms of privacy?
When it comes to retargeting, using third-party data can pose significant privacy challenges. Since this data is gathered from external sources, ensuring transparency and adhering to privacy laws like GDPR and CCPA becomes much more complicated. This lack of clarity can lead to legal troubles and diminish consumer trust.
On the other hand, first-party data – collected directly from your audience with their consent – offers a clearer path to compliance with privacy regulations. It not only minimizes legal risks but also fosters trust and strengthens your connection with your users. As privacy regulations become stricter, leaning on first-party data isn’t just a safer choice – it’s a more ethical and forward-thinking strategy for SaaS companies.
What’s the difference between retargeting and remarketing in terms of cost efficiency and ROI for SaaS businesses?
Retargeting and remarketing share the goal of re-engaging potential customers, but their methods and cost structures set them apart. Retargeting relies on paid ads to reach users who have already interacted with your brand. It’s often a more budget-friendly tactic compared to targeting entirely new audiences, with campaigns costing about 25–50% less. For SaaS businesses aiming for faster, measurable improvements in ROI, retargeting can be a powerful tool.
Remarketing, however, takes a different route by reconnecting with users through email campaigns. While the overhead costs for email remarketing are typically lower, the approach can deliver impressive ROI thanks to its personalized and direct nature. Both strategies have their strengths, but if your priority is achieving quick returns, retargeting’s ad-driven model might be the better fit.
